[V] Legal IP protection for print, music, film, & other creative works.
O16. Critical Thinking
[O] Using one's mind to solve a problem by considering various solutions.
S17. Employee
[S] An individual hired by a company and compensated for their work.
A18. Entrepreneur
[A] An individual who aspires to start and run a successful business.
L19. Equity
[L] Non-cash compensations offered to employees in place/addition to salary.
J20. Ethical Practices
[J] Standards of professional conduct professionals should uphold.
T21. Forward-Thinking
[T] Thinking about and planning for the future.
X22. Founder
[X] The person that developed or created a company or organization.
Y23. Franchise
[Y] A business that takes its name & traits from an existing chain.
M24. Grit
[M] Characteristic of being able to tackle goals with courage & perseverance.
W25. Growth Mindset
[W] Believing that one can accomplish anything with hard work.
U26. Hourly Pay
[U] Payment amount provided to employees for the number of hours worked.
Z27. Initiative
[Z] A characteristic in which an individual acts to turn ideas into action.
Official Teacher Resource • Domain 1 Solutions Page 1 of 2
Teacher Key Domain 1: Page 2 of 2
Domain 1 Match Key: Part 2
Part 2 Key • 27 / 27
Fast Grading Strip (Terms 28–54) 27 Pts
28
A
29
M
30
F
31
D
32
B
33
I
34
H
35
G
36
J
37
C
38
L
39
N
40
K
41
R
42
O
43
T
44
W
45
E
46
Q
47
P
48
S
49
Y
50
V
51
U
52
X
53
AA
54
Z
Key Vocabulary Term
Matched Definition
A28. Innovation
[A] A new idea, product, or method.
M29. Intellectual Prop.
[M] A creative work or invention to which an individual has rights.
F30. Lean Canvas
[F] One-page document discussing key information seen in a business plan.
D31. LLC
[D] Combines pass-through taxation with personal asset protection for owners.
B32. MVP
[B] Early, low-cost offering with just enough features to test with real users.
I33. Nonprofit
[I] A type of business that has no owner and does not pay federal US taxes.
H34. Opp. Recognition
[H] The way one approaches new ideas and ventures in their life.
G35. Owner
[G] The individuals that own the business.
J36. Partners
[J] Two or more individuals that share a business's financial responsibility.
C37. Patent
[C] A legal method used to protect an invention for a limited time.
L38. Personal Agency
[L] One's ability to act to work toward achieving a goal.
N39. Piece Work
[N] A type of compensation provided for the amount of work produced.
K40. Pitch Deck
[K] Presentation to investors providing overview of plan to earn a meeting.
R41. Problem-Solving
[R] The process of coming up with solutions to solve a problem.
O42. Resiliency
[O] One's ability to adapt to change, loss, and disappointment.
T43. Risk
[T] The possibility of something negative happening (loss of time/money).
W44. Risk Tolerance
[W] The level of willingness to lose time and money when starting a business.
E45. Royalty Fees
[E] Fees paid for the use of a brand name or image.
Q46. S Corporation
[Q] Business structure with special tax advantage passing income through shareholders.
P47. Salary
[P] A fixed payment amount provided to a full-time employee.
S48. Self-Reliance
[S] Trusting one's self, goals, and progress.
Y49. Small Business
[Y] Privately owned with fewer employees & revenue than larger businesses.
V50. Sole Proprietorship
[V] Structure with a single owner not shielded from any liability.
U51. Stakeholder
[U] An individual with an interest in a business.
X52. Stockholder
[X] An individual that owns at least one share in a corporation's stock.
AA53. Trade Secret
[AA] Practice protecting formulas, processes, or practices from competitors.
Z54. Trademark
[Z] A practice used to protect brand names, logos, and business names.
Official Teacher Resource • Domain 1 Solutions Page 2 of 2
[J] The group of customers a company chooses to market its products and services.
N 17.Value Proposition
[N] A promise of value that makes a product or service attractive to customers.
Common ESB v.2 Certification Distractors & Misconceptions:
Acquisition Costs vs. CAC (#1 & #6): "Acquisition Costs" refers broadly to overall costs incurred by a business, whereas "CAC" calculates the exact expense to acquire one new customer.
Primary vs. Secondary Data (#11 & #14): The ESB exam stresses that secondary data may contain personal bias (e.g., newsletters, articles), while primary data is direct first-hand research.
ESB Finance Key: Fixed costs remain constant regardless of production; variable costs scale directly with output.
ESB v.2 • Domain 4 Assessment
[S] The amount of financial gain from a business.
T 15. Revenue
[T] The number of sales and other income in a business for a given period.
R 16. ROI
[R] Financial calculation measuring profitability of an investment relative to cost.
P 17. Run Rate
[P] A calculation used to make projections about future performance.
I 18. Selling Price
[I] Calculated by adding the cost of production to the desired profit margin.
C 19. Small Business Admin.
[C] U.S. government agency providing counseling, funding, and support.
G 20. Variable Costs
[G] Fluctuating costs that a business has depending on production.
Domain 4 Distractor Alerts:
Burn Rate vs. Run Rate (#4 & #17): Burn Rate measures historical/current negative monthly cash flow; Run Rate projects future annualized performance based on current data.
Price vs. Selling Price (#13 & #18): "Price" is broadly the money charged; "Selling Price" specifically refers to cost of production plus profit margin.
